Corporate governance
The company is committed to high standards of corporate governance, business integrity and professionalism in all its activities. Throughout the year ended 31 December 2006, the company has complied with all of the provisions of the Combined Code issued by the Financial Reporting Council (the "FRC") in July 2003 (the "Code") except in relation to the authority reserved to the Board to make the final determination of the remuneration of the executive directors and in relation to the appointment of the Chairman of the Board to the Remuneration Committee.
In June 2006, the FRC issued a revised Combined Code (the "revised Code") which applies to reporting years beginning on or after 1 November 2006. The company has adopted provision B.2.1 of the revised Code early and has appointed the Chairman of the Board as a member of the Remuneration Committee as the company considers him to have been independent on appointment as Chairman.
Under the US Sarbanes-Oxley Act of 2002 (the "Act"), enhanced standards of corporate governance and business and financial disclosure apply to companies with securities registered in the US. The company complies with all currently applicable sections of the Act.
A full explanation of how these principles are applied is contained in the corporate governance and remuneration reports in the Group's 2006 Report and Accounts.
© 2007